Selling their interest in Algonquin Power (AQN-T). Their holding was really not that significant, and he is a little concerned about the utility group in this environment, where he expects the federal reserve to kick up rates on the 15th. If you are really keen on utilities, he would stand back and wait. You can get better rates elsewhere without that rate risk looking over your shoulder. This is not the time to rush in.

Merging with Spectra Energy, which will give them a more balanced state of about 48% natural gas and 40% oil. With the federal government approving the pipeline to Vancouver, this company lost Northern Gateway. You are looking at a better balance, and also there is going to be a new expansion of pipeline down into the Chicago area, which is going to offer more capacity for Saskatchewan. Americans are starting to talk about a pipeline running to the east coast, which would tie into Chicago. He is quite positive on this company and is looking at it again.

Drones. He wouldn’t want to own a drone maker, because it is going to be a Chinese industry. Instead of drones, these people are aiming for air rights, which he finds interesting. That is an asset you can’t replicate. Management is very, very skilled. They have built and sold a number of tech companies. They’ve just signed a contract with one of the shippers. He believes drones will eventually play a big part in the delivery business.

This is a food distributor, and is a turnaround idea. In a turnaround, there are a few things he likes to see. 1.) It should be a really simple business, because he doesn’t want some tech company that could be supplanted by something else. The company distributes food to restaurants and grocers, very simple and easy to understand. 2.) He also likes a long history, because then you could look at past financials and figure out where it might go. The stock price used to be much higher, $12, and now $1. 3.) 3.) Signs of improvement. Their business got hurt because they acquired debts, bought businesses, and didn’t pay attention to their margins which got crushed. We have now seen 2 quarters of improving margins. There has been a rights issue to fix the balance sheet to pay off some debt. They brought in an insider, someone with an impeccable 25-year track record in that business, which put $5.5 million of his own money into the rights issue. (Analysts’ price target is $0.95.)

Has a nice upward trend on technicals, but is very volatile. You really have to catch this in one of their down swings. A difficult company to analyse because it is sort of like an advertising agency, i.e. it’s mental talent in there that is doing it. Have done an excellent job and got all sorts of contracts. Big in Europe. Wait until it sells off before stepping in. Trading at almost 17X forward earnings.

Acquiring American Apparel. Gilden has been a really good operator, and it has been hard to get into a multinational company listed on the Canadian exchange. They’ve managed to have a good reputation in terms of not using slave labour, etc. and have great penetration in the marketplace. Whether this acquisition is going to work for them are not he is going to wait and see. He is going to watch and see what the news flow is, before he does anything.

A biotech company. Speculative because they don’t have any revenues yet. They are testing out a device called The Pons, which has been shown to improve a recovery rate in people that have traumatic brain injuries and illnesses like MS. In FDA trials right now. What makes it interesting is that it is in an unmet need.

Sold his stock, but has a convertible bond. Feels it still has legs as there is a lot of infrastructure spending in the world. They specialize in urban infrastructure such as tram systems, which is a growth industry for decades. Easy money has been made, but you could still grind out some gains and he is happy to hold it.

Doesn’t know this company, but he has done well in the medical marijuana space. There is no question that someone is going to make money, but valuations are getting pretty stretched. He would be cautious, take some profits, and maybe buy back when things settle down.

Just started mining in Papua New Guinea. Unfortunately, the gold price has turned against them, so the stock is getting crushed. However, even in a lower gold environment, this is probably a Buy. People are going to discover that they are actually producing and making money. Thinks they are going to be able to attract a bigger audience and more investors, creating a higher stock price.

Long-term hold? He is not enthused about the industry. It had some good market moves when people were looking for safe places, but the competition is fierce. Everybody is getting into this field. It is such a thin margin business and so competitive that he would rather go elsewhere.

Lithium stocks in general have done very well. Lithium is a key ingredient in batteries, and there definitely is a shortage. This company has a pretty good deposit in Argentina, which is where some of the best deposits are found.

We are going into an environment where lifecos start to look attractive again. You are getting into yield spreads that are okay, better equity markets, better economies. Generally, insurance company environments have improved. Has never been a super fan of this company, because in the past there have been a lot of situations where they have come out with earnings and some surprises. Because of this, he has always favoured Sun Life (SLF-T). However, this company has now come out with some really, really good earnings with no bad surprises. However, the stock reacted in about 3 days and went straight up. He thinks it is now fully discounting the good news and is fully priced. Looking a little pricey at these levels.

Pare back on profits? Just came out with some very good numbers. His concern with is that they were one of the best lenders. They had a pretty good spread of loans in Alberta which ended up being a significant negative. We are basically through the problem period, and they may be able to improve their write down potential. Looking like it has more upside, and this is not the time to pare back.

Easy money has been made, but they have a dividend and there is room for that to grow. Also, expects there will be more gains, because the stock of buses out there is pretty old. The industry in North America has consolidated tremendously.

(A Top Pick Oct 8/15. Up 18.06%.) A nice little company he discovered a few years ago. They had a big fight with their US distributor, and won $50 million. They got a new distribution for their topical cream and it took off. Had a bad 3rd quarter. They have a ton of cash, so there is room for M&A and new products.

Uranium explorer. One of the most successful stocks in the junior mining space. It did very, very well. They have a fantastic deposit that they are proving out. It has a good chance of being sold to a bigger player, but these things take time.

One of Canada’s leading drilling companies. It looks like energy is coming back. Pick axe companies really move, and he thinks you are in the early stage. Thinks OPEC is going to move the price higher and this is a good time to be buying energy services.

(A Top Pick Oct 8/15. Up 47.87%.) Operates a geothermal plant in Nicaragua. They basically punch holes in the ground, draw steam up, and it turns turbines. This also has a US$ dividend. He still likes this and thinks it still has upside. Payout ratio is 50%.

If you are late into the oil sector, this company with its refining assets is the solid citizen of the pack. You are not going to get a huge lift. The stock has been more sideways and volatile on a week to week basis. That reflects a very high quality, well-managed, good debt ratio oil company. If you are very cautious, this is probably not a bad stock.

He was a little disappointed in their last result. The Canadian results were a bit soft. His disappointment was that the US numbers weren’t better, but thinks they are going to get better. The US regulatory climate looks like it is going to get better. Dividend yield of 3.47%. (Analysts’ price target is $65.43.)

This has taken off like a rocket, mainly because of the huge run up in coal prices which he thinks is unsustainable. It all has to do with the Chinese doing this thing and the other thing. You can’t really base your investment strategy on what the Chinese are going to do next week or next month. Feels this is significantly overpriced, and represents a real risk to its holders.

Will Canadian large cap bilateral companies move to the US with Trump’s dropping of corporate taxes by 15%? These are things that are over the horizon. If it begins to go that way, the Canadian government will have to react. Canada has managed to be lower than the US previously, and we don’t seem to be that concerned about deficits. We have to be competitive with the US on things like this. Thinks our government will react. Feels this company is going to be a big beneficiary of Trump.

This is a strange one. It is a Canadian company, but the majority of assets are in Europe and off Ireland’s coast. It’s not North America so you don’t have some of the problems there. Runs a very tight shop in Europe. They’ve managed to keep their balance sheet in good shape. With higher oil prices, that is just going to add. The dividend yield of 4.62% looks safe. (Analysts’ price target is $57.50.)

(A Top Pick Oct 23/15. Down 1.64%.) This is supposed to be the European Index, but really looking at the individual securities, it is very much England, Switzerland and Germany. The BREXIT thing came along and that threw a real curve. He is letting this sit for the moment as he thinks there is still some potential.

Market. What Trump plans to do is to reverse course from what has been going on for the past 8 years, and take away the emphasis on monetary policy and low interest rates, and move over to fiscal policy. There are 4 things coming along. 1.) Tax cuts, which can be fairly quick, and would be a nice boost for corporate profits. 2.) Up to $5 trillion of infrastructure spending, designed for all those people who have lost their jobs. 3.) Potential changes to the Dodd-Frank act for the banks. 4.) A major repatriation of all of the overseas cash that is sitting in bank accounts of many corporations. These things are quite bullish for the market. He suspects that the US$ is going higher, and gold is going lower. You put your money into the financial stocks, which are going to be huge beneficiaries.

Market. He had been quite cautious on bonds prior to the US election. There is still risk out there. There is going to be uncertainty as to how US policies will be implemented, and if the Trump administration is protectionist at all. So far, he seems to have moderated some of his views. Talking about tax cuts, deregulation, infrastructure spending all of which are generally very pro-growth and good for business, and ultimately good for the US economy and equities.

Marijuana stocks? He wouldn’t invest in any marijuana stocks. If you have made some money, he would suggest you take some profit. A lot of these companies are growing quickly and could become much bigger, but looking at the valuations and market capitalizations that are being placed on these companies, it is reminiscent of the tech boom back in 1999 and 2000.

Will the growth in a dividend stock negate any negativity from a rising interest rate? In the short term, there is a risk that you get a rotation impacting companies, but if you have a company where the dividend can consistently increase, investors are generally willing to pay for that. If you have a long-term view and you like dividend stocks, these types of companies are not a bad place to be.

Canadian Banks. These have been good long term stocks to own, but in general, US banks are more attractive. They’ve been depressed and valuation multiples have been about the same as Canadian banks. However, the environment is going to be better as far as rising rates for better net interest margins. The US housing market has recovered, but still has room to grow, whereas the Canadian housing market has concern that it is at a peak and is leveling off.

(A Top Pick Jan 26/16. Up 49.48%.) The stock actually got up to $31, and had a 40% correction from the top. He has a technical line in the sand at about $14. He is concerned about the price of bullion in the next while.

Almost like a private lending business where they have different stakes in companies through loans or preferred share agreements. Some of those have been troubled recently which has caused the share price to come off. He is not fond of the business model and they have a reasonable amount of debt which he doesn’t like. Some of the underlying investments have not been doing all that well.

He is steadily selling off his holdings. It has exceeded its FMV by about 20%. The stock has done well, but to keep going the way they have, they have to make larger and larger acquisitions. His experience with consolidators is that eventually they reach the stage where they make a catastrophic acquisition, and the stock goes down.

Boeing (BA-N) or Delta (DAL-N)? A fine company with a fine management, but absolutely incompetent as far as their capital market sense is concerned. They’ve been buying back stock again and again. You would’ve thought that if they had bought back all that stock, earnings would have been going up, but they are sliding down instead. They should stop buying back stocks, because essentially, they are buying back a little bit of BV, and a whole lot of air. Trading at about 16.5X BV, which is very high. Delta trades at about 2.5X BV. He would buy Delta and forget Boeing.

He likes the US banks across the board. This is trading at about its nominal Book Value, a discount to what he would call his Fair Market Book Value. It has huge upside potential, and he thinks that potential is going to grow under the Trump administration. Dividend yield of 1.37%. (Analysts’ price target is $20.07.)

A little overvalued. The last few months have been characterized by weakness, particularly in the commercial property stocks. Higher rates are going to hurt stocks to some degree, but with the economy continuing to be strong and infrastructure spending, that can only help.

(A Top Pick Jan 28/16. Up 63.08%.) There have been a lot of good things happening. They’ve been growing and have a brand-new facility in Waterloo. Have been winning new contracts to fill that capacity up. There has been a huge amount of legislative change in Ontario in the beer industry, which is allowing craft brewers like this one, to get a lot more space on the shelves.

Essentially an infrastructure stock with about 60% of their business focused on energy, of which LNG is a big part. They also do a lot of general infrastructure work. The stock is cheap. Dividend yield of 0.83%. (Analysts’ price target is $36.08.)

A great company. The stock hasn’t gone up a lot, and is still trading at a very high valuation level. You are paying for a lot of good things to happen. Today, when there are so many good companies that are still growing and have pretty powerful brands, they are more attractive from a valuation standpoint, and those are the things that he is looking at. You are taking more risk in a name like this that is trading at a 70X earnings multiple.

He likes the financial sector, but believes the US banks are the better place to invest right now. A well-run company, but the stock is up quite a bit in recent months, probably around optimism on oil prices. The stock is not overly cheap. Feels there are better places to invest in, in financials.

Very, very cheap. Sells at Price to Book at about 3. Of that book value, to all sense and purposes, it is all “goodwill”, which he might refer to as water in a portfolio. Analysts have been slow in pulling down their earnings forecasts.

A great growth story in Canada over many, many years. He is not attracted to it because of valuations. The question is how much more can they continue to expand. Also, they may suffer a little in this environment where investors rotate out of these types of names. Not a bad company, just a little expensive for his liking.

This has come off quite a bit recently, giving investors an opportunity to buy a high quality, global property/casualty insurance business. It is firing on all cylinders. For a long time, they’ve had an incredible long-term track record, but for the last number of years returns haven’t been as good. You have the insurance business operating at low 90%-91% combined ratio, so they are earning a lot of money there. Recently took off a lot of their equity hedges and got out of a lot of their bonds just before the election. There are now in an enviable position where they can redeploy their huge amount of cash into higher yielding investments. Trading at close to BV. Dividend yield of 2.28%. (Analysts’ price target is $764.97.)

If you have some patience, and are not rushing to buy this, perhaps you could wait. At $44, the stock came hard against some pretty impressive technical resistance, and backed off about 10%. He would like it to come back another 10%.

(Market Call Minute.) A great way to participate in an improving US economy. They’ve made a big bet on energy, so this is another way you can get some leverage to the energy sector. A good solid business and they pay a nice dividend.

This has had one heck of a correction off its top, about 12 months ago. He has a downside target of $70, which would be a very, very attractive level to buy. Forecasted earnings are sloping off a bit, but the forward PE is only 6.75% times, the upside potential is over 100% and the company has a very nice balance sheet. If he can find this on good technical support with solid value, it’s the kind of stock that can give you quite a bounce.

Can they compete with Nordstrom (JWN-N)? It falls on Nordstrom to prove that they can compete. Hudson’s Bay has had a sharp earnings fall off, and the stock remains quite a bit above its FMV. He would not be invested in this company.

A cheap stock and they are doing everything they can. Have made a lot of acquisitions and now owns Saks. They’ve expanded in the US. They are trying to focus on the higher end consumer, as opposed to being stuck in the middle and facing competition from the Walmart’s etc. A very, very difficult business and is obviously in secular decline.

This is positioned to benefit, like many of the other large cap energy companies, from rising oil prices. It’s a big company with great assets. To the extent that they are going to get into the pipeline business, those assets are more stable and less volatile. Trading at a reasonably low cash flow level.

An engineering construction company, focused more on the architectural side. Poised to benefit from the infrastructure spending. They are also benefiting from the condominium boom where they are doing a lot of development and architectural work in Canada and the US. It had always been a good steady business, but they had too much leverage, and have been working hard to reduce that. As they reduce the debt, value will transfer from debt holders to the equity holders, and the share price will gradually increase over time.

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